For City Council Meeting July 28, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Yazdan Emrani, P.E., Director of Public Works
Title
Request City Council/Rialto Utility Authority to: 1) Conduct a Public Hearing to Consider the Placement of Sewer Service Charges on the County Property Tax Roll for Delinquent Wastewater Payments; and 2) Adopt City Resolution No. 8549 and RUA Resolution No. 26-09 Authorizing the Placement of Delinquent Wastewater Payments on the County Property Tax Roll.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority:
1) Conduct a Public Hearing related to the placement of charges on the County Property Tax Roll for delinquent wastewater payments; and,
2) Adopt City Resolution and RUA Resolution authorizing the placement of delinquent wastewater payments on the County Property Tax Roll.
BACKGROUND
The City of Rialto (City), through the Rialto Utility Authority (RUA), is responsible for providing sewer services to all properties within the City limits and parts of Bloomington. In areas where RUA also supplies water, customers receive a combined bill for both water and sewer services. Under Rialto Municipal Code Section 12.08, the RUA is authorized to encourage timely payment through penalties and, when necessary, water service shutoffs. However, not all properties in Rialto receive water from RUA. In some parts of the City, water is instead provided by the West Valley Water District or the Fontana Water Company. For those customers, RUA bills only for sewer services. Because the RUA does not control the water supply in these cases, it lacks the ability to enforce payment through service disconnections. As a result, these “sewer-only” accounts tend to show higher rates of delinquency.
To address this issue, the City amended Rialto Municipal Code Section 12.08.201, authorizing the placement of past-due sewer charges on the County property tax rolls. This amendment, enacted by Ordinance on June 19, 2007, mirrors the approach used for recovering unpaid solid waste service fees and provides an effective tool to ensure the collection of outstanding sewer balances.
ANALYSIS/DISCUSSION
Notification letters were sent to the delinquent account holders alerting them of City/RUA’s plan to place the delinquent charges on the property tax roll and giving them one last opportunity to pay. The last date for a customer to pay their delinquent wastewater bill before placement on the tax rolls was June 25, 2026. It should be noted that if a customer paid their delinquent wastewater bill prior to the deadline, their property and the levy amount will be removed from the list provided to the County. A copy of the letter is included as Attachment 1.
To complete the process and meet the County submittal deadline, a Public Hearing must be conducted to approve the levy and list of properties of delinquent account holders that meet the criteria for placement of liens with the County. A copy of the Notice of Public Hearing is included as Attachment 2 and Proof of Publication is included as Attachment 3.
If approved by the City Council/RUA, staff will work to finalize the list of delinquent account holders and levy amounts being submitted to the County. In addition, the City will provide and compare the most recent County property ownership data with the City’s account data and will submit the charges to the County on behalf of the City. Exhibit A, included as Attachment 4, shows the most recent list of the delinquent properties. The resolutions placing the charges on the tax roll must be approved by a two-thirds vote of the City Council and the RUA Board and are included in this report as Attachment 5 and Attachment 6.
For Fiscal Year 2025-2026, San Bernardino County revised its secured tax roll submittal schedule, moving the deadline for agency tax roll submissions from August 10 to June 24, 2026. Due to the accelerated schedule, the City of Rialto requested and received an extension from San Bernardino County to allow additional time to complete the required public hearing and notification process. The County granted the City an extension through July 30, 2026, for the submission of the final sewer service charge levy file.
This item was presented to the Water Subcommittee on May 28, 2026, and to the Cable Advisory and Utilities Commission on June 16, 2026. The Commission recommended that the item be forwarded to the City Council for consideration and approval.
ENVIRONMENTAL IMPACT
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b)( 5) a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney’s Office has reviewed the resolutions and approved them as to form.
FINANCIAL IMPACT
Operating Budget Impact
The estimated revenue from placing delinquent sewer charges on the County’s secured tax roll is approximately $1,204,348.57 based on 1,794 delinquent accounts. These funds represent the potential recovery of outstanding charges that would otherwise remain unpaid. The County of San Bernardino charges an administrative fee of Thirty Cents ($0.30) per parcel for placing the delinquent wastewater charges on the County tax roll, and such fee shall be added to each levy and collected by the County of San Bernardino. It is important to note that only accounts in which the customer and property owner are the same, as verified through the County’s secured tax roll, are eligible for inclusion.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.
Licensing
This action does not require a business license.
ATTACHMENTS
1. Tax Roll Notification Letter
2. Notice of Public Hearing
3. Proof of Publication
4. Tax Roll Exhibit A
5. Resolution
6. RUA Resolution